Global Economy

Question 1

Export promotion

Answer 1

Export promotion, or export-led growth strategy, is any policy that supports domestic industries so that they become exporting industries.

Question 2

Import substitution

Answer 2

Import substitution refers to protectionist measures that are implemented to help a country become independent from imports from abroad.

Question 3

economic resilience

Answer 3

The ability of an economy to respond to or withstand exogenous shocks and to continue to function and support thriving communities.

Question 4

intergenerational equity

Answer 4

The goal of fairness or justice between generations of human beings, young and old.

Question 5

deindustrialisation

Answer 5

A situation where the share of manufacturing in the economy is actually declining.

Question 6

protectionism

Answer 6

A set of policies designed to protect domestic firms from the competition of foreign firms in the domestic firms market. This includes policy action such as tariffs, quotas and subsidies

Question 7

Privatisation

Answer 7

Privatisation occurs when government owned companies are sold to private owners.

Question 8

Strengths and limitations of market-based policies (privatisation/deregulation)

Answer 8

Strengths
Economic growth May reduce equity
Development – multiple dimensions? May result in market failure
Productive efficiency May increase unemployment
Allocative efficiency Ineffective if institutions and complex systems are dysfunctional
Reduced pressure on government budget Ineffective if informal economy is large

Question 9

market-based policies examples

Answer 9

(privatisation/deregulation/trade liberation)